Walter Alfred Joyce, 45, was released in a Corner Brook courtroom on Wednesday morning.

He may return back to Alberta until his next court appearance on Jan. 17.

The small community of Lark Harbour, with roughly 500 residents, is reeling from the deaths.

Police confirmed Joyce had family connections with Merle and Marilyn Sheppard, the couple he allegedly killed.

CBC News has learned he is the brother-in-law of Marilyn Sheppard.

Joyce, who goes by his middle name Alfred, lives and works in Fort McMurray, Alta., but had returned to Lark Harbour to visit family for Christmas.

He is charged with impaired driving causing the deaths of Marilyn Sheppard, 51, and Merle Sheppard, 59, with a blood alcohol level over 80 milligrams at the time.

The couple was walking home along Little Port Road following a family Christmas celebration, when they were allegedly struck and killed in the early hours of Dec. 26 by Joyce, who was leaving the same event in his vehicle.

Walter Alfred Joyce, 45, was released in court in Corner Brook on Wednesday morning. (Cherie Wheeler/CBC)

A number of people filled the courtroom Wednesday, speaking to lawyers with the Crown and defence.

Joyce was released on a $4,000 cash deposit for surety plus a $500 bond.